Costco, day care facility will receive up to 60% each in tax breaks to build in South Windsor

A for sale sign sits near where a new Costco has been proposed in South Windsor. (Hartford Courant)

Costco and Educational Playcare will receive tax reductions of up to 60% each to build in South Windsor, the town council has decided.

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Costco, which plans to build a 160,000-square-foot warehouse along Buckland Road, north of Evergreen Walk, will receive an annual tax reduction of 60%, or $270,319, for its first 10 years of business. Educational Playcare, a day care facility, will see a 50% tax break, or $37,769, on its planned $2.8 million building at 742 Ellington Road.

Both plans were approved unanimously by the council and economic development commission. The town’s “tax partnership program” encourages the development and expansion of businesses in South Windsor through tax and other economic incentives. The program is “designed to retain and attract businesses that will generate substantial additional tax revenues and employment opportunities while providing quality goods and services.”

South Windsor has previously granted tax breaks to businesses including Coca-Cola Bottling Company of Northern New England, aerospace engineering company Electro-Methods Inc. and Aldi.

“This is a great shot in the arm to the town for purchasing,” Town Manager Matthew B. Galligan said of the Costco project.

Costco would be located on former tobacco fields adjacent to LA Fitness. It would be the second Costco on the eastern side of the Connecticut River, joining one in nearby Enfield. There are also locations in New Britain, Waterbury, Milford and Norwalk. Company officials asked the town for the tax break due to high development costs, including $16 million for the building and $11 million in site work.

“They love the area and think this is a great place to open a warehouse,” Costco spokeswoman Carrie Wood said. “The soils are very unstable and there is a lot of work underground that needs to be done to stabilize the building so it doesn’t move with the water there. ... When you look from the outside, it looks like you can just plop a building down, but there’s a lot more work behind the scenes and the expense is very high.”

Wood said the Costco would include a 16-bay gas station. The project would bring 250 jobs — half of them full-time — to the area.

“It’s been wonderful to work with this town,” she said. “Not all towns throughout the New England area work like this.”

This parcel along Ellington Road is where a proposed Educational Playcare would be built. (Hartford Courant)

The 16,000-square-foot Educational Playcare project will be built on Ellington Road near the intersection of Pleasant Valley Road. The company is the largest privately-owned day care facility in the state, with 19 other locations across Connecticut. Educational Playcare’s Harry Freeman said the town has a need for day care services.

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South Windsor has been struggling to provide before- and after-school care for children. The parks and recreation program, “4th R,” is filled, with dozens of children on a waiting list.

“The good news is you guys are doing a heck of a good job attracting a lot of people to this fine town,” he said. The center will hire 45 employees and take care of 250 children. The entire project cost is $4 million.